It’s no secret that Warren Buffett likes certain stocks, and Occidental Petroleum (NYSE:OXY) stock happens to be one of his known favorites. Like the Oracle of Omaha, we give Occidental Petroleum a high rating for terrific value, dependable dividends and powerful energy production.

Occidental Petroleum has a dual mandate. Helping achieve a “net-zero future” is part of Occidental’s credo, but so is providing “reliable energy now.” Why is energy needed now, though?

It’s because the U.S. and other free nations are seeking independence from not-always-friendly petroleum-producing countries. Occidental Petroleum has everything that a Buffett-style investor could ask for, and is also a problem-solver as America works toward energy self-sufficiency.

What’s Great About OXY Stock?

If you’re like Buffett, you’re constantly on the lookout for a great value. OXY stock fits that description perfectly, as Occidental Petroleum’s trailing 12-month price-to-earnings (P/E) ratio is quite reasonable at just 5.29x.

Occidental Petroleum’s shareholders have enjoyed good returns in 2022 despite the broad market’s downturn. At the same time, it’s not too late to take a position as the shares aren’t overbought by any reasonable valuation measure. Plus, long-term investors can collect dividend distributions. Occidental pays a forward annual dividend yield of 0.81%.

Now, we’re starting to see why OXY stock would be a Buffett pick. Now, if you’re wondering whether those dividend payments are safe, consider this. Occidental Petroleum generated a whopping $2.5 billion of net income during this year’s third quarter.

In other words, Occidental has vast income streams coming in and should have no problem maintaining its dividend payouts.

An Energy Crisis Could Favor OXY Stock

Is there a looming energy crisis? Faisal Humayun is bracing for the possibility of a petroleum supply shortfall, and he identified OXY stock as a prime pick. Nobody’s hoping that an energy crisis will occur, but Humayun is 100% right to consider Occidental Petroleum shares as an ideal investment amid geopolitical tensions and conflict.

If any American oil producer can be counted on to step up to the plate, it’s Occidental Petroleum. During 2022’s third quarter, the company produced 1.18 million of barrels of oil equivalent per day (Mboed). This result “exceeded the midpoint of guidance by 25 Mboed,” Occidental pointed out.

This is a timely result as OPEC+ isn’t as cooperative as America and other nations would like them to be. OPEC+ includes the Organization of Petroleum Exporting Countries (OPEC) and also includes Russia. In October, OPEC+ agreed to reduce its petroleum output by 2 million barrels per day.

That production cut is supposed to last until the end of 2023. In early December, OPEC+ reaffirmed its commitment to that production reduction. Therefore, a global energy crisis is a distinct possibility in the coming months and years. Clearly, America’s energy security is a priority now and Occidental Petroleum’s high-volume domestic production is well-timed.

What You Can Do Now

Now, we’ve figured out what Buffett probably sees in Occidental Petroleum. There’s a great value proposition plus reliable dividend distributions. However, there’s more to the story here.

At stake is America’s energy security and independence. Domestic drillers must step up and produce oil now, even if they’re committed to a net-zero future, and that’s exactly what Occidental Petroleum is doing. So, feel free to be like Buffett and invest in a great value, and in U.S. energy independence, with OXY stock.

On the date of publication, Louis Navellier had a long position in OXY. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.